PRESIDENT' S COMMISSION ON PERSONNEL INTERCHANGE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-01114R000100020006-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 29
• Document Creation Date: December 12, 2016
• Document Release Date: February 21, 2002
• Sequence Number: 6
• Publication Date: December 15, 1969
• Content Type: REGULATION

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PRESIDENT'S COMMISSION
ON
PERSONNEL INTERCHANGE
December 15, 1969
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Page
Numbe r
Purpose of Executive Interchange Program
1
Management of the Program
3
Eligibility Requirements
5
Steps in the Selection Process
7
Conditions of Appointment
9
Avoiding Conflicts of Interest
11
The Host Organization's Commitment to
Interchange Executives
13
Personal Development Program
15
Interchange Executive and Program
Evaluation Plan
17
Publicity for Personnel Exchange Program
19
Obligations to Nominees and Appointees
21
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PURPOSE OF EXECUTIVE INTERCHANGE PROGRAM
In recent years, the relationship of business and Government has at-
tracted increasing attention. In addition to being an innovative force for
responding to social issues, Government has also become a balancing
force in an economy which has become increasingly large and complex.
Similarly, while business has long been perceived as the dynamic force
behind economic progress, in the last few years it has been participat-
ing more and more as an agent of social change.
The growing size and intricacy of national economic and social problems
has created a need for greater cooperation and understanding between
Government and industry. In many cases neither sector alone has the
resources or knowledge sufficient to deal with the issues which face it.
The continuing specialization of function within public and private ad-
ministration has made it essential that leaders in both sectors achieve
a better understanding of the purposes of their counterparts. By avoid-
ing the isolation effect of specialization, the program will provide
clearer understanding about the motives of men and institutions of the
other sector.
The 2x.~-sident's Commission on Personnel Interchange has been estab-
lished in response to the problems of limited resources and speciali-
zation. The overall purpose of Executive Order 11451, establishing the
Commission, is to provide highly motivated young executives from
middle management levels of industry with first hand experience in the
processes of our national Government. At the same time, gifted young
Americans pursuing careers in the Federal Service will be provided
with the opportunity for similar involvement in the business sector.
The program will provide outstanding career people in business-and
Government with mid-management operating exposure to the philoso-
phies, practices, disciplines, problems, and objectives of the other
arenas. No discrimination in selection or treatment of a nominee at
any stage of the program will be made on the basis of race, color, re-
ligion, sex, political affiliation, or national origin. These appointments
will:
- improve executive performance in American public and private
organizations by exposing the appointees to the skills and knowl-
edge of managers in the other sector.
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- foster cooperative action between Government and industry by
broadening the experience of rising public and private execu-
tive s.
- initiate and encourage a continuing exchange of innovative and
effective management practices between Government and industry.
- develop a group of private executives with government experi-
ience who could be called upon in the future for advice and
counsel.
- open both sectors to fresh thinking on problems and programs.
- demonstrate the benefits of such cross-over experience so as to
encourage the further development of similar interchange pro-
grams.
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Management of the
Program
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MANAGEMENT OF THE PROGRAM
The President's Commission on Personnel Interchange is responsible
for developing and implementing the Executive Interchange Program.
It establishes program policies and directs the day-to-day functions
through its executive staff. Under the guidance and review of the Com-
mission, the executive staff will establish operating procedures, and
perform the routine business of conducting the operating program.
The Commission is also responsible for making recommendations to
the President as to ways of promoting further interchange between
Government and the private sector.
A group of Presidential appointees nominated by the heads of the major
departments and independent agencies will serve as the liaison between
their agencies, the Presidential Commission, and private organizations
in the selection of candidates and positions. Final selections and work
assignments will be recommended to the Presidential Commission.
The Commission may ask for qualification and suitability investiga-
tions on candidates. It may call upon the U. S. Attorney General for rul-
ings and resolutions of cases concerning conflicts of interest, and upon
other organizations as may be appropriate to carry out its program
management responsibilities. As provided in the Executive Order, each
Federal department and agency shall cooperate with the Commission
and shall furnish it with such assistance as the Chairman may request
in connection with the program.
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Eligibility
Requirements
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ELIGIBILITY REQUIREMENTS
Men and women from mid-level careers in private business or in Fed-
eral Civil Service are eligible for this program provided they are
nominated by the head of their company or agency and are citizens of
the United States. Citizens overseas may be nominated if they will be
returning to the United States prior to the convening of the screening
committee. While strict age and salary ranges will not be established,
it is expected that the candidates will generally be between the 25- and
40-year-old bracket and have salaries between.$44x,$90 an $2S&,-9G9:
Candidates will be selected annually, but duration of assignments under
the program will be kept somes'hat flexible depending upon each
situation. Generally speaking, however, an assignment will prob-
ably last a minimum of one year. The assignments will usually begin
during summer months to minimize disruption of school transfers or
separation of families. However, if mutually agreeable to participant
and interchange employer, other arrangements could be made.
At least in the first year of the program, participants will be limited to
approximately twenty from each sector.
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Steps in the
Selection Process
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STEPS IN THE SELECTION AND ASSIGNMENT PROCESS
1. Announcement -- Each year the Commission will invite public and
private organizations to nominate prospective candidates for the
Executive Interchange Program.
2. Application -- Candidates will be proposed for the program by their
company president or Federal agency head, and submitted to the
Presidential Commission. Official nomination forms will be provided.
Managers should be motivated to nominate the most promising candi-
dates. The nominees should be made aware that participation will be
in the best interest of their organization, their country, and individual
careers.
3. Review of Nominees -- The Commission will conduct the initial re-
view of all applications and may request the Bureau of Investigations,
C.S.C., to conduct qualification and suitability inquiries on pro-
posed candidates. The Commission will review the backgrounds of
all nominees.
Because of the fundamental career development aspects of this pro-
gram, primary consideration will be given to such factors as special
abilities which indicate promise of future leadership, educational
achievement, prior on-the-job achievement, intellectual capacity,
and interest in community and governmental affairs.
4. Selection of Assignments -- Liaison officials will serve as the
catalyst for developing challenging assignments within the various
departments. These positions will be reviewed by the Commission
for their appropriateness. The Presidential Commission will assist
in soliciting active program support from businessmen, and en-
courage companies to suggest challenging positions for which they
will accept suitable candidates from Government. These positions
will also be reviewed for their appropriateness by the Commission.
5. Matching Man and Position - - The work assignment is the heart of
the Executive Interchange Program. The assignments are intended
to provide the executive with a total immersion in the operations
of the Federal government and the business sector. Throughout the
assignment, emphasis is placed on direct participation in the opera-
tion of the Government agency or business enterprise to which these
Interchange Executives will be assigned.
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The initial assignment will be carefully negotiated by the respon-
sible private and public officials with a due regard for the impor-
tance of selecting the work assignment best suited to each individ-
ual. If necessary for proper job assignment, personal interviews
will be conducted. It is neither necessary nor recommended that
appointees be kept on one job or in one segment of the organization.
Recognizing the continuum of change that takes place in organiza-
tions, it is possible that temporary new assignments may be of-
fered to many persons while in the program. However, if the new
function is a significant change, it must be reviewed in advance by
the Commission.
Once proper assignments are determined, the Commission will
formally announce the participants.
6. Special Recognition -- Appointees will receive special recognition
by the President's Commission, the Federal agencies, and business
as considered appropriate.
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Conditions of
Appointment
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Those candidates selected as Interchange Executives by the Commis-
sion will be placed on the payroll of the company or Federal agency
to which they are assigned. During the selection and matching process,
salaries will be negotiated by the appropriate Government and industry
representatives. It is expected that salary range will be from-$4,8-,G-&Q
te-$ -8 000. Differentials in salaries, fringe benefits, moving allowances,
and related matters will be worked out on a case-by-case basis by
each corporation or Federal agency to avoid financial sacrifices.
Federal employees selected will be on a leave-without-pay status by
their sponsoring agencies upon entry into the program and placed on
the payrolls of the host organization in the private sector. The persons
selected from private business will be hired by the Federal govern-
ment under a special Schedule A appointing authority granted by the
U.S. Civil Service Commission with the usual fringe benefits, and
also will be on a leave of absence from their companies. If necessary,
the participating corporations shall be encouraged to amend their
benefit plans to treat temporary Government service in a similar
manner to that of military service. Such treatment will help reduce
the financial sacrifice which many corporate executives may incur by
serving the Government in this program.
Under Section 209 (a) of Title 18, U.S. Code, appointees cannot receive
compensation for their services as employees of the United States
from any other source except the Government of the United States.
Thus, the business executive cannot receive from his company any
payments to supplement his Government compensation. Section 209 (b)
of Title 18, however, provides that this provision does not prevent an
employee from "continuing to participate in a bona fide pension, retire-
ment, group life, health or accident insurance, profit- sharing, stock
bonus, or other employee welfare or benefit plan maintained by the
former employer." The Office of Legal Counsel of the Department of
Justice has ruled that this provision applies to an executive coming
to Government under this program; therefore, there is no particular
barrier for a business executive taking a leave of absence and working
for the Government on a full-time basis so long as the conflict of
interest laws and regulations are strictly observed.
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AVOIDING CONFLICTS OF INTEREST
It is essential that adequate measures be taken to avoid placing Inter-
change Executives in potential conflicts of interest. For this reason,
the following safeguards are to be incorporated in this program.
1. The compensation of appointees from the private sector cannot be
supplemented by their companies during the period of Federal em-
ployment (see page 7, third paragraph regarding Title 18 of the
U.S. Code, Sections 209 (a) and (b)).
2. Appointees may be required to submit a Statement of Employment
and Financial Interest for review by the legal staff of the private
organization or Government agency before assignment.
3. Before final designation of work assignments, the Commission will
again review the tentative assignments to ensure that appointees are
not placed in situations which might lead to conflicts of interest.
When deemed necessary, these assignments will be formally cleared
by the agent's general counsel office or by the private business
general counsel office.
4. A representative of the host organization will make continuing re-
views to assure avoidance of potential conflicts of interest. If at any
time the representatives determine that a conflict of interest ap-
pears to be developing, they will immediately consult with their
agency's or company's general counsel and, if necessary, recom-
mend a change in work assignment to the Commission.
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The Host Organ s
Commitment to
IniKd vW Executives
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THE HOST ORGANIZATION'S COMMITMENT
TO INTERCHANGE EXECUTIVES
The host organizations and the Interchange Executives have mutual re-
sponsibilities for the success of this program. It should be fully under-
stood that certain organizational and personal commitments are neces-
sary to meet the objectives of the program: a deeper understanding of
the interrelationships between business and Government. Therefore, it
is mandatory that the host organization observe the following:
1. That the assignment be a meaningful one and continually reviewed
with regard to individual development.
2. That :personal development programs complement and expand the
working experience.
3. That at the end of the assignment, the appointees will return to
their sponsoring organizations; and that management at all levels
fully understand the purpose of the assignment and are prohibited
from encouraging the Interchange Executive to pursue a career in
the host organization's sector.
4. That the host organization will make periodic evaluations of the
individual's experience and report these to the Commission.
5. That a report of experience gained be prepared by the host organiza-
tion at the conclusion of the assignment to provide case histories
for reference in determining future assignments.
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ersona eve opment
Program
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PERSONAL DEVELOPMENT PROGRAM
The purpose of the program is to fully engage the Interchange Execu-
tives in the job function. A supplementary development program will
be provided to place their working experience into the context of the
assigned sector. However, placing more emphasis on the development
program than on the work assignment would defeat the purpose of the
program. Government and business executives will participate in
educational programs designed to supplement their work experience.
These programs will be organized and directed by a nonprofit organi-
zation with any assistance as may be necessary from participating
Federal. agencies, private organizations, and the Commission.
Upon entry into the Interchange Program, all executives will partici-
pate in an extensive seminar in the Washington area. This seminar will
serve as the initial orientation and will offer the Interchange Executives
an opportunity to interact with the Commission. At the conclusion of the
work assignments, a follow-up seminar will be conducted, bringing to-
gether all the participants of the first group. This gathering will serve
as a summary analysis and evaluation of the Interchange Program and
should provide valuable information to the Commission for adjusting
and modifying the program.
For Interchange Executives engaged in the business sector, the train-
ing program should contain, at a minimum, instruction in business-
oriented areas. The proposed program should be reviewed by the
Commission upon the Interchange Executive's entry on the job.
For participants from business engaged in Government functions, a
group program will be offered which presents an analytical look at
the changing role in making and carrying out public policy. In addi-
tion, this program will explore American political culture, stability of
government systems in the midst of political and social change, inter-
action among the various branches of government, interaction of the
Federal government, state and local governments, and policy presenta-
tions of public interest groups, the President and Congressional leaders.
The program will also offer a look at the commonality of interest,
the need for increased cooperation between business and Government,
and a review of national fiscal and monitary policies in joint Govern-
ment-business action in resolving critical. problems, particularly those
of our urban areas.
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Other educational experiences may be developed on an individual basis
by the various employing agencies and companies to assist Interchange
Executives with the work assignments and to reinforce the learning
which takes place on the job. These might include informal gatherings
at night, and perhaps dinners or receptions for the Interchange
Executives from both sectors.
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and Program
Evaluation Plan
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INTERCHANGE EXECUTIVE AND PROGRAM EVALUATION PLAN
Interchange Executives in Government and business must be provided
with an opportunity to review their own assignments and be counselled
by the Commission on a personal basis. Thus, monitoring the varied
assignments on a continuing basis is an integral part of the program.
This process will include informal consultation with the Interchange
Executives to obtain feedback from them on their work experience.
Throughout the program, the employing organization will make evalua-
tion reports on the Interchange Executive's experience and perform-
ance. The Commission will confer with the individual and the employing
organization, as needed on a personal and written level, to assure the
obtainment of a meaningful experience and to resolve problems.
To facilitate the evaluation process, a representative from each host
organization will be requested to act as liaison between the Interchange
Executives and the Commission. These liaisons will work in coopera-
tion with the Commission to develop and maintain continuing contacts
with those participating executives. They will also aid in arranging
informal meetings complementing the educational program.
The evaluation procedure, as a means of compiling statistical informa-
tion on the program and maintaining close personal contact, will be
done on an informal and formal basis. It will be conducted on a planned
schedule, but informal communications will be conducted often at gather-
ings in 'Washington or by telephone conversations with those Executives
in other cities. These telephone conversations will be made a matter
of record.
At the completion of the program, a detailed report of experience gained
will be prepared by the employing organization and the Interchange
Executive. These reports will be forwarded to the Commission and the
sponsoring organization in order that future career assignments can
take full advantage of these experiences. The Commission will conduct
post-program follow-ups with Interchange alumni to assess program
impact on career progress and utilization.
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Publicity for
Personnel Exchange
Program
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PUBLICITY FOR PERSONNEL EXCHANGE PROGRAM
A publicity campaign will be conducted to establish the Executive Inter-
change Program as a highly prestigious organization.
To be successful, this campaign must include:
1. A liaison with the White House publicity staff to plan appropriate
press releases concerning the Executive Interchange Program.
2. Public endorsements from concerned public and private organiza-
tions.
3. Press releases on the selected candidates for hometown newspapers.
4. Articles and press releases in mass media such as newspapers,
magazines, professional journals, and in-house publications of
Government and business.
5. Brochures to describe in detail the purposes and operations of the
program.
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Nominees and
Appointees
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OBLIGATIONS TO NOMINEES AND APPOINTEES
Entrance into this program will be limited to those middle management
level employees showing the highest promise. Therefore, it is expected
that following this executive-level experience, Interchange :Executives
will be offered significant career opportunities. These opportunities
should be discussed thoroughly with persons nominated for the program.
This kind of career encouragement by the sponsoring organization thus
becomes the motivational foundation for the participant.
Program interest and prestige should be developed through such recog-
nition features as outlined below:
Nominees - Each Interchange Executive may receive special recognition
from the sponsoring company or Federal agency.
Because the nature of this program requires careful matching of
man and position, not all of the nominated candidates will be partic-
ipants. The lack of a suitable assignment for nominated candidates
should not be interpreted adversely by the individual or nominating
organization. The matching process is not one of competition among
nominees, but merely reflects the best assignment of individuals
which meet the goals of the program.
Appointees - Interchange Executives, upon completion of the program,
will receive engraved, framed certificates signed by the Chairman
of the Presidential Commission.
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